Edition:

Should an energy firm raise prices and increase profits at a time of austerity?

SSE is the latest energy company to hit the headlines for announcing dramatically increased profits – up by 38% in the six months to the end of September – at a time when energy customers face large price increases

Energy firms could face swingeing fines and be forced to pay customers back through lower energy prices if the fixing allegations are proven. Photograph: Action Press/Rex

SSE's chairman, Lord Smith of Kelvin, said: "While some observers may choose to criticise SSE for making a profit and paying a dividend, I believe that profit and dividend allow SSE to employ people, pay tax, provide services that customers need, make investments that keep the lights on and create jobs – while providing an income return that shareholders like pension funds need."

Is it reasonable for an energy company to raise prices and increase profits at a time of economic austerity?